Apple's iWatch could be the firm's next smash hit and sell 60 million units within a year, a leading analyst has claimed.

Morgan Stanley analyst Katy Huberty says the watch, expected to cost around $300, will sell between 30 and 60 million units.

She believes it could sell as many units as Apple's smash hit iPad, and far more than the iPhone in its first year.

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Reports have previously claimed Apple's iWatch could double up as an activity tracker. This concept image reveals how the rumoured device and health tool might look. Dubbed the Diet Watch, it could track calories and steps as well as heart rate. It could launch at an event in October, alongside Apple's next iPad range

TWO YEARS AND STILL NO IWATCH

Speculation
around Apple's iWatch began at the end of 2012 and a rumoured release
date was initially set for the fourth quarter of 2013.

Chinese websites reported in December 2012 that the computer giant was working with chip-maker Intel on a wrist-worn gadget.

It was said to have a 1.5inch screen and use Bluetooth to communicate with other devices, including an iPhone.

Other
rumours suggest the iWatch will feature Siri voice controls that let
users dictate messages, rather than use the tiny screen.

The watch could also be used as a remote control to change music tracks or pause video, on the phone or tablet.

In July last year, reports in the Financial Times said Apple was hiring outside help to tackle design problems with its iWatch.

The analyst says Apple's 'halo' effect will drive sales, and outlined three scenarios for sales.

In the 'base case,' the iWatch follows the iPhone’s adoption trajectory, selling 30 million units in the first 12 months at $300 apiece, generating an extra $9 billion in revenue and adding 49 cents to Apple’s bottom line.

Earlier this week it was claimed Apple's iWatch has been delayed and will not begin mass production until November, it has been claimed.

It is believed the firm has delayed the watch to ensure the hardware and software is perfect at launch.

However, it is believed the firm could still announce the device in October at a special event.

In a research note obtained by AppleInsider, KGI analyst Ming-Chi Kuo says the iWatch represents a new level of difficulty for Apple in regard to both hardware and software development.

'Kuo estimates Apple will push back mass production to mid- or late-November, one month later than previous models claiming large-scale manufacturing would start in late-September,' the site claims.

'With only a few supplier ramping up ahead of an anticipated October release, supplies of the wearable will be constrained and are unlikely to meet market expectations of 10 million shipped units by the end of 2014.

'Instead, Kuo says about 3 million iWatches will be in the wild by year's end.'

Apple recently poached a senior executive from Swiss luxury watch brand Tag Heuer, which could be to help it with the launch of its iWatch expected this autumn.

Los Angeles Lakers shooting guard Kobe Bryant (pictured) was spotted on Apple's Cupertino campus last month, and is believed to have met Apple's design boss Jony Ive and his team to discuss upcoming products - including the iWatch.

Tag Heuer, part of luxury goods group LVMH, said on Friday its vice president for sales, Patrick Pruniaux, who had been with the brand for seven years, was leaving on Monday to join Apple.

It did not say what his new job would be, and Apple declined to comment.

Jean-Claude Biver, head of watch brands at LVMH and chairman of watch brand Hublot, said he believed the threat of smart watches had to be taken seriously by the Swiss watch industry.

'The iWatch will have the same status symbol power as many other Apple products, especially at the beginning,' he said.

'I personally believe it has the potential to be a threat for the industry, and it should not stay with its arms crossed.'

Apple applied for a trademark for the "iWatch" in Japan, a patent official said earlier this week, signaling the iPhone maker could be moving ahead with plans to launch a watch-like device soon.

Google announcement comes just a week after sources revealed Taiwan's Quanta Computer Inc will start mass production of Apple first smartwatch in July, and the much anticipated timepiece will be revealed in October. Pictured is a concept design of what the iWatch may look like

Speculation has been mounting that Apple was preparing to launch an iWatch which would include multiple health and fitness sensors and access to features such as messages and notifications through integration with the iPhone and iPad.

A sweat sensor is believed to one of at least 10 sensors on the watch.

It has also been revealed Apple has signed up a host of sports star to try the wearable - including basketball star Kobe Brant, who was recently spotted at Apple's Cupertino campus.

According to laoyaoba.com, the sweat sensor has been developed in house by Apple.

Although the watch is shrouded in secrecy, players from the MLB, NHL and NBA have believed to have been approached about the fitness aspects of the watch.

One of these athletes is reportedly Los Angeles Lakers shooting guard Kobe Bryant, who was spotted on Apple's Cupertino campus last month.